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fbt

krantinath (student) (106 Points)

26 November 2008

Dear friends

If a company provides food / beverages in the office or factory the same is not liable to fbt

will it be different if the food / beverages provided inthe office but it is a holiday(other than sunday/public holiday)

Regards

krantinath

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6 Replies

Rajat Kedia ACA CS MCOM (Assistant Manager) (613 Points)
Replied 26 November 2008

no it will not be liable to fbt

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CA Hemant T Dewani (Chartered Accountant) (3356 Points)
Replied 26 November 2008

if food is provided after office hours it is taxable in my opnion so you will liable for fbt

krantinath (student) (106 Points)
Replied 26 November 2008

food is taxable after office hours if it is reimbursed to the employee and it is not taxable if it is provided by the employer even after office hours.........can be checked with circular (frequently asked questionson fbt) issued by the cbdt available inthe website incometaxindia.gov.in

Anantha Lakshmi K (Student CA Final ) (44 Points)
Replied 26 November 2008

definitelty it is taxable to FBT because it is provided in the office during holiday period

if the same is reimbursed by the employer it is taxable to fbt

krantinath (student) (106 Points)
Replied 26 November 2008

thank you all who replied

and

how it is taxable can u give me some reference in the act or any case law on this .

my opinion is that it is not liable to fbt as it is provided in the office only eventhough in holiday period and not reimbursed to the employee

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CA Surajit Kashyapi (Chartered Accountant) (112 Points)
Replied 01 December 2008

FBT will not applicable in following two situation:

1) Any expenditure on, or payment for food or beberages provided by the employer to his employees in office or factory.

2) Any expenditure on or payment through paid vouchers which are not transferable and usable only at eating joints or outlets.

So there are no condition of holiday or not. If the expenses made in office or factory premises or by non transferable vouchers then it will not be under the perview of FBT. And I believe department has a clear view that if any food expenses by employer in office for employees then it will not be taxable under FBT .... and holiday is not a point to be considered here.